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Originally Posted by kennyc
This is clearly evident in their actions. This conclusion is supported by other transitions to digital media. This conclusion is supported by the new publishers which are emerging in the ebook publishing world that are not tied to the traditional print distribution model.
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No, it is not supported by new, emerging publishers. If I publish one ebook my costs will be less than that of a BPH. That does not prove that a BPH can therefore sell for less and still be profitable. If I am an emerging publisher and do not have to pay a million-dollar advance to Stephen King for his next novel, I can sell Joe Schmoe's Tales froma Dripping Bed Frame for less than the BPH can sell King's new novel. That doesn't prove that the BPH can make a profit at $9.99.
The BPHs publish more than 80,000 new titles every year. Their costs by scale alone are higher than the emerging publihser who publishes 3 ebooks alone and only does POD for pbooks.
Your bases are still not fact-based.